Opinions Stan Wong
BMO US High Dividend Covered Call ETFZWH.TOCOMMENTSep 11, 2014
Stan WongUnknown
$16.12
Stock price when the opinion was issued
$26.75
As of Jun 05, 2026. Market Open.
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TOP PICK
Main thing is it's not leveraged. Holds all the big, household names. Dividends are small on US stocks, so most of the premium you're getting is from the covered calls which are capital gains. Hasn't come back from April because it doesn't have all the super-charged tech stocks. Yield is around 6-6.5%.
John HoodOwned
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TOP PICK
Likes it as a sector play--high-dividend US stocks--and for the dividend of 6%. It's broadly based, and bonds don't pay much or anything.
John HoodOwned
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COMMENT
There is space for these ETFs for yield seekers. One of the challenges in 2020 was that dividend paying stocks did terrible relative to technology that does not pay dividends. Still likes them for conservative investors.
Larry Berman CFA, CMT, CTAUnknown
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WEAK BUY
ZWE-T vs. ZWH-T. With covered calls, when you are in a slightly up or down or sideways market, the call brings in a premium and dampens the volatility. But when it is in a very strong uptrend, the covered write lops off the top of the uptrend. The upside is capped. In a sharp declined followed by a snap-back rally, the same thing applies. You should have both for covered write portfolios to increase diversification if you are going to have them.
This has a lot of the utility and telecom names in it and a lot of those names are pretty richly valued at this time. He would recommend that you look at the BMO DJ Industrial (ZDJ-T) instead. You want to own these types of ETF’s in a relatively flat to sideways moving market. That is when you will collect the dividend along with the option premiums.